In an IS-LM model, an increase in the personal income tax rate will
A) lower consumption and the interest rate but increase investment
B) lower consumption and investment but increase the interest rate
C) increase aggregate money demand and therefore cause interest rates to increase
D) increase the expenditure multiplier
E) decrease real money balances
Correct Answer:
Verified
Q23: Monetary policy becomes more effective as
A)the interest
Q24: In the money sector, other things being
Q25: In an IS-LM model, an increase in
Q26: The LM-curve becomes steeper if
A)money demand becomes
Q27: The monetary policy multiplier is large if
A)the
Q29: In an IS-LM model, a decrease in
Q30: If money demand becomes more income elastic,
Q31: If we change the assumption that money
Q32: In an IS-LM model, an increase in
Q33: In an IS-LM framework, a decrease in
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